The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, raised the policy repo rate by 25 basis points to 5.50% on Wednesday, marking its first rate hike since February 2023, as rising crude oil prices, food inflation and weather-related risks clouded the inflation outlook.
The RBI also raised its FY27 GDP growth forecast to 7.1% from 6.7% and its inflation projection to 5.2% from 5.1%, while shifting its policy stance to calibrated tightening.
